City of Cape Town explains electricity tariffs and price hikes

THE City of Cape Town says that customers are seeing the impact of the massive Eskom-driven electricity increases.

It now costs municipalities 17.8% more to buy power from Eskom. The majority of the City’s electricity tariff income is used to buy power from Eskom, and now at higher prices, the metro said. The rest of the tariff income goes for the maintenance, investment and operations of the City’s network.

“This is where the City has some direct cost control and has managed to absorb as much of the cost of the steep Eskom increase as was possible without impacting on service delivery,” it said.

“It is impossible to absorb the full extent of such massive increases, although the City has done its best. The City was compelled to implement a 13,48% electricity increase from 1 July 2021 as was communicated in June. This is directly because of the Eskom increases,”